Todays ZEW Data Might Determine Germanys Economic Fate in the Future

Today's ZEW data might determine Germany's economic fate in the future.

The ZEW Germany Economic Sentiment Indicator is expected to be published today at 09:05 GMT, with an expected value of 5.8 as against a reading of 3.6 in the last survey. The indicator comes in the form of a monthly series. It is calculated by the Centre for European Economic Research after tabling its questions among roughly 300 financial experts from banks, insurance companies, and corporate finance departments. It points out general trends that may be anticipated for the following six months and within areas such as economic performance, inflation, interest rates, stock markets, and oil prices.

An unexpected index registering a growth rate above expectations might be as much an indication that institutional investors are very optimistic about the German economy. Such moods could translate into good feelings for the euro, which in turn makes it strengthen further. A lower-than-expected indicator would be a reason for people to fear economic challenges such as inflation or low growth. Investors might shift their portfolios as a result, and the stock and currency markets would take their various knocks.

Canada’s Core CPI Data Arrives Today

The Core Consumer Price Index of Canada (CPI) will arrive today at 12:30 GMT, which shows the change in prices of a fixed basket of goods and services excluding food and energy-apparently rose to 0.0% in October from -0.1% in September. One of the indicators that is carefully monitored, since it reflects secular inflation dynamics in Canada.

If the index flattens out or turns higher, it may indicate that inflation pressures are moderating and could help support the Canadian dollar (CAD). The investor might believe that the Bank of Canada is unlikely to increase interest rates anytime soon. A decline in the index may lead to concerns over weak demand and slow price growth. This could possibly increase the likelihood of additional debate on easing the monetary policy and have an impact on CAD performances